An interim report by MGM China Holdings, operator of two hotel casinos in Macau, lays the blame for a poor performance in the first half of 2020 on the effects of the Covid-19 pandemic.
The closure of the border with mainland China and the temporary suspension of the ferry services from Hong Kong had a major impact.
Casino operations in Macau closed for 15 days from February 5 and after that health safeguards continued to limit the venues’ performance. The border was reopened and the issuing of visas resumed on July15 still imposed conditions on visitors and some remain in place today.
As a result operating revenue fell from HK$11.3bn (€1.2bn) to $2.3bn (€249m), EBITDA fell from $3bn (€325m) to a $1bn (€108m) loss and the operating profit of 2019 of $1.4bn (€151m) fell to a loss of $2.4bn (€260m).
During the year the company’s CEO Grant Bowie retired but remains an advisor until the end of 2022. Pansy Ho continues as managing director of MGM Grand Paradise and other senior executive roles were restructured.